tsmc stock shows resilience amidst gan exit

2025-07-04 tsmc

taipei, Friday, 4 July 2025.
Taiwan Semiconductor Manufacturing Company (TSMC) saw its stock price reach $234.80 on july 3, 2025. 6,732,914 shares exchanged hands. Market analysts are closely watching tsm’s performance metrics. These include dividend yields, short interest, and its beta. A strategic shift is underway. By 2027, tsmc plans to exit the gallium nitride (gan) foundry market. This move comes as the company focuses on advanced packaging technologies. Despite this change, tsmc projects a revenue increase of 24% to 26% for 2025.

stock performance and market position

TSMC’s stock demonstrated a rise of $1.89, or 0.81%, closing at $235.49 on july 3, 2025 [1]. In extended trading, the price further increased by $0.11, reaching $235.60 [1]. The day’s trading saw a range between $233.27 and $237.58 [1]. With a market capitalization of $1.22 trillion, the company’s p/e ratio stands at 30.27, and the dividend yield is 1.01% [1]. The consensus rating for the stock is a moderate buy, with a price target of $233.75 [1]. An analyst at global securities noted that tsmc’s strategic investments and strong market position are expected to continue driving growth [2].

gan exit strategy

TSMC’s decision to exit gan production by july 2027 is driven by rising price pressures from chinese rivals [3][4]. The company will repurpose its hsinchu fab 5 for advanced packaging, aligning with the increasing demand for technologies like chip-on-wafer-on-substrate (cowos) [4]. This move reflects a strategic shift towards advanced node development and away from legacy businesses [3][4]. Tsmc’s current gan production stands at 3,000 to 4,000 wafers monthly [3]. Navitas semiconductor will transition its gan production to powerchip semiconductor (psmc) [3].

impact on navitas semiconductor

Navitas semiconductor announced a strategic partnership with powerchip semiconductor (psmc) [3][5]. This partnership involves psmc handling the gan chip’s 8-inch wafer foundry production [5]. Navitas’s decision to partner with psmc is influenced by technical compatibility with gan-on-silicon (gan-on-si) technology [3]. Navitas aims to diversify its supply chain and enhance operational flexibility through this partnership [4]. Tsmc’s exit from gan wafer foundry production by the end of july 2027 was communicated to navitas [4].

financial metrics and future outlook

TSMC’s stock has shown substantial growth, increasing by 19.2% from the start of the year when it was trading at $197.49 [1]. Earnings are projected to grow by 19.89% in the coming year, from $9.20 to $11.03 per share [1]. The company’s trailing twelve-month return on equity is 31.43%, with a net margin of 41.67% [1]. Despite exiting the gan market, tsmc anticipates a revenue increase of 24% to 26% in 2025 [3]. The u.s. senate is considering a 35% tax credit for new chip fabs, which could further benefit tsmc [3].

Bronnen

stock performance semiconductor manufacturing